Sri Lankan rupee strengthens for second day; stocks rise

September, 11, 2019

** Sri Lanka’s rupee closed stronger for a second day on Tuesday, after foreign outflows from government securities showed a declining trend, while stocks too ended higher. ** The rupee ended 0.1% firmer at 180.30/50 per dollar. It closed at 180.40/60 on Monday. The currency is up 1.3% this year. ** Foreign investors sold government securities worth 500 million rupees in the week ended Sept. 4, data showed, extending the year to date net foreign outflow to 53.7 billion rupees through Sept. 4, central bank data showed. ** The weekly outflow last week, however, was far less than the average weekly outflow of 12.85 billion rupees in the previous two weeks. ** Meanwhile, the benchmark stock index rose 0.1% to 5,822.47. ** Investors have been in a wait-and-watch mode since the main opposition party named a hardline former defence chief as its presidential candidate. ** So far this year, the stock index has dropped about 3.8%. ** Equity market turnover was 716.3 million rupees ($3.97 million) on Tuesday, more than this year’s daily average of about 649.5 million rupees so far. Last year’s daily average was 834 million. ** Foreign investors sold a net 46.4 million rupees worth of shares on Tuesday, extending the year-to-date net foreign outflow to 1.77 billion rupees worth of equities, according to index data.